News

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Summary of the March 2022 GPF meeting

20 Apr 2022

Representatives from the International Accounting Standards Board (IASB) and the Global Preparers Forum (GPF) held a hybrid meeting on 11 March 2022. Notes and a recording from the joint meeting have now been released.

The topics discussed at the meeting included:

  • Supplier finance arrangements
  • Non-current liabilities with covenants
  • Update on IASB and IFRS Interpretations Committee developments

The meeting summary and the recording are available on the IASB website. The next GPF meeting is proposed to be held on 16-17 June 2022 (jointly with the CMAC).

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Podcast on Q1 2022 IFRS Interpretations Committee developments

19 Apr 2022

The IASB has issued a podcast on the developments of the IFRS Interpretations Committee during the first quarter of 2022.

The podcast is hosted by IFRS Interpretations Committee Chair and IASB member Bruce Mackenzie and Technical Staff member Patrina Buchanan and focuses on the following topics:

  • Demand deposits with restrictions on use arising from a contract with a third party
  • TLTRO III transactions
  • Transfer of insurance coverage under a group of annuity contracts
  • Negative low emission vehicle credits
  • Lessor forgiveness of lease payments
  • SPAC transactions — Classification of public shares and accounting for warrants at acquisition
  • IASB narrow scope projects

For more in­for­ma­tion, see the press release on the IFRS Foundation’s website.

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EFRAG publishes feedback statement on IASB's proposed reduced disclosure IFRS

18 Apr 2022

The European Financial Reporting Advisory Group (EFRAG) has published its feedback statement on the International Accounting Standard Board’s (IASB's) Exposure Draft ED/2021/7 'Subsidiaries without Public Accountability: Disclosures'.

EFRAG published its Final Comment Letter in February 2022. 

The Feedback Statement summarises constituent's feedback on EFRAG's draft comment letter relating to the proposals in the ED and explains how this feedback was considered by EFRAG in reaching a final position on the proposals.

A press release and the feedback statement are available on the EFRAG website.

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Agenda papers available for the UK Endorsement Board Meeting on 21 April 2022

14 Apr 2022

The meeting agenda and papers for the UK Endorsement Board (UKEB) meeting on 21 April 2022 are now available

The agenda items for discussion are as follows: 

    • IFRS 17: CSM Allocation for Annuities
    • IFRS 17: ECA, Feedback Statement and draft Due Process Compliance Statement
    • Research Project: Subsequent Measurement of Goodwill – Update 
    • ISSB Exposure draft PIP
    • Items for Noting

The meeting agenda and papers and details of how to register are available on the UKEB website

The meeting recording can be found on the UKEB website here and the meeting summary can be found on the FRC website here.  

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FRC launches consultation to take on registration of auditors of PIEs

14 Apr 2022

The Financial reporting Council (FRC) has launched a consultation to take responsibility for the registration of auditors of public interest entities (PIEs) from the recognised supervisory bodies (RSBs)

The proposal, as recommended by the Kingman review and the Department for Business, Energy and Industrial Strategy (BEIS) White Paper, will bolster the FRC's regulatory toolkit and give the FRC powers to make make timely interventions and ensure audit firms are run in a manner that enhances audit quality.

Currently, the FRC has insufficient powers to address systemic issues at the firms and must rely on the registration powers of the RSBs. By directly registering audit firms and individuals signing PIE audit reports, the FRC will be able to act decisively when it identifies systemic issues in audit. The FRC will be able to impose conditions, suspensions and remove registration where required. The FRC will work closely with the RSBs and other stakeholders to implement the new registration process.
 
The consultation is open until 26 May 2022.  A press release and the consultation are available on the FRC website.

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April 2022 IASB meeting agenda posted

14 Apr 2022

The IASB has posted the agenda for its next meeting, which will be held via video conference on 25–28 April 2022. There are nine topics on the agenda.

The Board will discuss the following:

  • Post-implementation review of IFRS 9
  • Third agenda consultation
  • Main­te­nance and con­sis­tent ap­pli­ca­tion
  • Goodwill and im­pair­ment
  • Primary financial state­ments
  • Second comprehensive review of the IFRS for SMEs
  • Equity method
  • Disclosure initiative — Subsidiaries without public accountability: Disclosures
  • Management commentary

The full agenda for the meeting can be found here. We will post any updates to the agenda, our com­pre­hen­sive pre-meet­ing summaries, as well as observer notes from the meeting on this page as they become available.

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UKEB adopts May 2020 amendments to IFRS Accounting Standards

13 Apr 2022

The UK Endorsement Board (UKEB) has adopted the International Accounting Standard Board’s (IASB's) May 2020 Amendments, its first adoption decision since the delegation of powers in May 2021.

The adopted amendments include three Annual Improvements (from the IASB’s Annual Improvements to IFRS Standards 2018–2020) and three Narrow-Scope Amendments, as follows:

These amendments are effective for annual periods beginning on or after 1 January 2022, with early application permitted.

The press release and updated adoption status report are available on the UKEB website.

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FRC publishes new Audit Firm Governance Code

13 Apr 2022

The Financial Reporting Council (FRC) has published a new Audit Firm Governance Code for the 'Big Four' audit firms and firms that audit FTSE-350 companies and significant numbers of public interest entities (PIEs).

The new Code, which was the subject of consultation in August 2021:

  • separates the roles of the board chair and senior partner/chief executive;
  • clarifies the role played by partnership boards in holding management to account;
  • introduces criteria for board composition, reinforcing the position of independent non-executives within audit firms;
  • sets out a clearer distinction between the role of Independent Non-Executives (INEs) and Audit Non-Executives (ANEs) for the largest audit firms; and
  • more closely aligns with the UK Corporate Governance Code, emphasising the importance of long-term sustainability, culture and employee engagement. 

The press releasenew Code, and feedback statement to the consultation are available on the FRC website.

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Webinar on the ISSB EDs

12 Apr 2022

On 28 April 2022, the International Sustainability Standards Board (ISSB) is offering a live webinar on its proposed standards on general sustainability-related disclosures and climate-related disclosures.

The webinar, hosted by ISSB Vice-Chair Sue Lloyd, will offer an overview of ED/2022/S1 General Requirements for Disclosure of Sustainability-Related Financial Information and ED/2022/S2 Climate-related Disclosures and will provide the opportunity to ask questions.

For the convenience of stakeholders in different time zones, there will be two sessions of the webinar, one a t 9:00 BST and one at 17:00 BST.

Registration for the webinar is now open on the website of the IFRS Foundation.

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CIPFA LASAAC issue its statement on the Deferral of IFRS 16 Leases

12 Apr 2022

The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee have issued an updated statement on the deferral of IFRS 16 'Leases' for Local Authorities until 1 April 2024.

Following its emergency consultation in February on exploratory proposals for changing the Code of Practice on Local Authority Accounting in the United Kingdom ("the Code"), CIPFA LASAAC issued its preliminary decision and feedback statement in March.  The government’s Financial Reporting Advisory Board (FRAB) subsequently considered the preliminary decision and advised CIPFA LASAAC that it agreed with the deferral of IFRS 16 Leases until 1 April 2024.

As a result, the implementation of IFRS 16 will be deferred until 1 April 2024 (and therefore in the 2024/25 Code).  However local authorities are encouraged to adopt the standard before this date should they wish to and this is permitted in the 2022/23 and 2023/24 Code which will allow for early adoption as of 1 April 2022 or 2023.

The updated statement on the deferral of IFRS 16 for Local Authorities is available on the CIPFA website.

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